The 1976 Federal Land Policy and Management Act put an end to federally sponsored homesteading in the contiguous 48 states, meaning there is no more homesteading land available from the government in Colorado. However, in the last decade, a private co-op in Agate, Colorado offered independent homesteading land to sufferers of the housing crisis, and government land comes up for sale at value periodically.
The failed Meadowlark Cooperative in Agate offered free land to applicants on the condition that they developed the parcel and paid to build their own house, in addition to donating a portion of income or crops to the co-op on a monthly basis. The effort failed in 2012, with reports of plots abandoned, scattered with old tires and wooden palettes. Only the two original landowners continued to live on the property.
The Colorado State Land Board may sell off government-owned land in order to benefit the land trust. Listings appear on the federal GovSales website, organized by state and property type.
Homestead exemption laws in Colorado cover individuals filing bankruptcy, allowing the property titleholders to maintain ownership on the property despite financial standing. In the state of Colorado, the exemption amount is $60,000 for non-disabled and non-elderly adults, and $90,000 for elderly and disabled people. In order for the Homestead Exemption Laws to apply, the amount of debt must be less than the exemption amount.